Government Promises Substantial Incentives for Electric Vehicle Manufacturers as Local Content Increases
The government is actively promoting the use of domestically sourced components, known as Tingkat Komponen Dalam Negeri (TKDN) or Local Content Requirements.
Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM), Rosan Perkasa Roeslani, has pledged to provide significant incentives for electric vehicle manufacturers in the country. The amount of incentives offered will depend on the extent of local product absorption, meaning the production process must involve domestically sourced components.
"Of course, we will provide greater incentives if they meet the TKDN requirements. The concept is that the higher the TKDN, the greater the incentives provided," said Rosan Perkasa Roeslani.
Rosan added that this policy represents the government's effort to support ease of doing business for electric vehicle manufacturers. He also urged companies to not only focus on electric vehicle production but also contribute to infrastructure development, such as public electric vehicle charging stations (SPKLU).
"We need widely distributed charging stations. Because if electric vehicles are already available but charging facilities are limited, it will certainly reduce public interest," Rosan added.
With this policy, the electric vehicle industry in Indonesia is expected to develop more rapidly and sustainably.
**Developing Research and Development**
Meanwhile, Rosan invited manufacturers to establish research and development (R&D) centres in Indonesia. The government has made available incentives of up to 300 per cent to support R&D activities.
"Since 2022, there has been a regulation enabling the provision of incentives of up to 300 per cent for companies conducting R&D in Indonesia," he explained.
Rosan emphasised the importance of having research and development centres for industry in Indonesia. With the incentives on offer, manufacturers are expected to be further encouraged to invest in innovation and new technology.
Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM), Rosan Perkasa Roeslani, has pledged to provide significant incentives for electric vehicle manufacturers in the country. The amount of incentives offered will depend on the extent of local product absorption, meaning the production process must involve domestically sourced components.
"Of course, we will provide greater incentives if they meet the TKDN requirements. The concept is that the higher the TKDN, the greater the incentives provided," said Rosan Perkasa Roeslani.
Rosan added that this policy represents the government's effort to support ease of doing business for electric vehicle manufacturers. He also urged companies to not only focus on electric vehicle production but also contribute to infrastructure development, such as public electric vehicle charging stations (SPKLU).
"We need widely distributed charging stations. Because if electric vehicles are already available but charging facilities are limited, it will certainly reduce public interest," Rosan added.
With this policy, the electric vehicle industry in Indonesia is expected to develop more rapidly and sustainably.
**Developing Research and Development**
Meanwhile, Rosan invited manufacturers to establish research and development (R&D) centres in Indonesia. The government has made available incentives of up to 300 per cent to support R&D activities.
"Since 2022, there has been a regulation enabling the provision of incentives of up to 300 per cent for companies conducting R&D in Indonesia," he explained.
Rosan emphasised the importance of having research and development centres for industry in Indonesia. With the incentives on offer, manufacturers are expected to be further encouraged to invest in innovation and new technology.